In its Q2 earnings report, Volvo Cars cautioned that its electric vehicle (EV) transition will not be a linear one. While EVs are driving growth for the automaker, there are potential headwinds for the sector. Here are the key points:

1. Sales Performance:

   - Sales of EVs increased by 43% in the quarter, representing 26% of Volvo's total global retail sales of 205,400 vehicles.

   - However, booked orders for EVs were down 16% in Q1, dampening the automaker's plans to go fully electric by 2030.

   - Volvo CEO Martin Lundstedt attributes this slowdown to early adopters driving the switch to zero-emission transport.

2. Short-Term Hesitation:

   - The transition to an all-electric future won't be linear. Volvo acknowledges short-term hesitation due to factors like the economy, incentives, energy prices, and infrastructure availability.

   - Hybrid models play a crucial role as a bridge to broader EV adoption.

3. Milestone Year Ahead:

   - 2024 will be a milestone year for Volvo with several new electric models: EX30, EM90, and EX90.

   - The EX30, a popular small SUV in Europe, may face EU tariffs on China-made EVs in the near term. Long term, production will shift to Ghent, Belgium, in early 2025.

   - Volvo will reveal more details during its Capital Markets Day in September.

4. Overall Outlook:

   - Volvo expects retail sales to grow 12% to 15% in 2024, provided there are no major disruptions.

Volvo remains committed to sustainability and aims to navigate the uncertainties of EV adoption while delivering on its targets.